An Empirical Research On Our Commercial Banks' X Efficiency In Performance Evaluation Based On The DEA Approach

Since China's accession to WTO, the financial market of our country opens gradually, and the financial systems also constantly deepen the reform. Various types of financial institutions develop vigorously, among which, China's commercial banks are undergoing great and profound changes. As a flood of foreign banks rolling into our market, China's commercial banks face more and more variables and challenges. As the subject of the financial system, commercial Banks play a crucial role. Commercial banks'operating performance directly influences the stability and development of the financial system in China. Commercial banks'efficiency determines their competitiveness in the international market. Therefore, in accordance with the actual situation in our country, it needs to develop a set of evaluation methods and procedures that adapts commercial banks'efficiency performance of our country in order to improve their own competitiveness.Under consideration of background and significance of the research, first, the paper comments on the topical subject of commercial banks'efficiency and introduces some researching results in this field at home and abroad. Then, the paper, choosing one state-owned commercial Bank in Tianjin as researching sample based on the selected data from 2007 to 2010, using the most forefront nonparametric performance evaluation method that called Data Envelopment Analysis (DEA) ,deeply analyses the state-owned commercial banks'X efficiency and builds the index system for performance evaluation. At the meanwhile it fully considers regional economic factors'influences of X efficiency and does the amendment of efficiency value. At last, it compares the calculating data of efficiency from vertical side and lateral side and finds the reason why there are differences of evaluation existing among commercial banks. Combined with the actual situation, it proposes improvement schemes and estimates a group of optimal input-output data as benchmark that can be used to adjust income for commercial banks, thus reduces commercial banks'cost so as to obtain a bigger profit.